El-Erian Says Fed Has No Vision, Warns of Overtightening Risks
- Slew of Fedspeak has been a source of instability, he says
- His comments come after Fed Chair Powell’s speech Thursday
This article is for subscribers only.
Federal Reserve policy makers risk slamming the brakes too hard on the economy by reacting aggressively to each data point that comes in, said Mohamed El-Erian, the chief economic adviser at Allianz SE. They should, he said, establish a longer-term vision for where interest-rate policy is heading.
“You cannot drive a car without some understanding of what the road ahead looks like. You can’t just look at the rear-view mirror and try to adjust to every curve you just had,” El-Erian, who’s also a Bloomberg Opinion columnist, said on Bloomberg Television Friday.